15.3.18

Russian-Zimbabwean firm to invest $400million in Zimbabwe platinum

Great Dyke Investments (GDI) Ltd. said on Thursday it would invest
about 400 million dollars to build a precious metals mine and smelter in
Zimbabwe as the country opens up to international business.
The joint venture between Russia’s JSC Afromet and Zimbabwe’s Pen
East Ltd., expects to produce up to 855,000 ounces (27 tonnes) of
platinum group metals and gold per year from the Darwendale PGM project.
Its deposit, which has total resources of around 1,300 tonnes of
platinum group metals (PGMs), is part of the Great Dyke in Zimbabwe and
is the world’s biggest PGM asset, the companies said in a statement.

Zimbabwe is the third largest platinum producer at 445,000 ounces
last year, behind South Africa and Russia, according to the World
Platinum Investment Council.
GDI’s chief executive Igor Higer expects the project will double the
production of PGMs in Zimbabwe. He is one of several investors who have
spent more than 100 million dollars, which entitles them to special
terms.
The mine life after project ramp-up to full capacity is estimated at 35 years.
“According to our estimates the investment in the first phase, the
project construction is $400 million,” said Hepsina Rukato, chairman of
the GDI board of directors.
The companies said that the initial infrastructure of roads, storage and residential facilities has been built.
The project is expected to create around 8,000 highly skilled jobs at full capacity.
PricewaterhouseCoopers and SFA Oxford provide analytical support to
the project. Cresco Project Finance and EY have been engaged as
financial advisers.